A lender provides electronic TILA disclosures for a refinance transaction through their secure online portal. The borrower logs in and views the disclosures on Tuesday but doesn't print or download them. When does the rescission period begin?
Correct Answer
D) Tuesday, if the borrower consented to electronic delivery
Under TILA and E-SIGN Act requirements, electronic disclosures are considered delivered when made available to the consumer in the agreed-upon electronic format, provided proper consent to electronic delivery was obtained. The rescission period begins when the disclosures are made available, not when accessed or printed.
Why This Is the Correct Answer
Under TILA and E-SIGN Act requirements, electronic disclosures are considered delivered when made available to the consumer in the agreed-upon electronic format, provided proper consent to electronic delivery was obtained. The rescission period begins when the disclosures are made available, not when accessed or printed.
More Federal Laws Questions
A mortgage broker's website states 'Qualified borrowers can get loans with down payments as low as 3%.' Which statement about TILA advertising requirements is correct?
A loan's APR increases from 4.25% on the Loan Estimate to 4.35% on the Closing Disclosure due to a rate lock expiration. What action is required?
A lender originates a mortgage that meets all QM requirements. Three years later, the borrower defaults and claims the lender violated the ATR rule. What legal protection does the lender have?
For a closed-end mortgage loan, when must the creditor provide the Closing Disclosure to the borrower?
Which of the following documents must be provided to trigger the start of the 3-day rescission period?
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